European Central Bank (ECB) President Christine Lagarde has voiced her support for German Chancellor Friederich Merz’s proposal to establish a single European stock exchange. Lagarde believes this unified exchange would bolster European listings and stimulate economic growth across the Eurozone. Her endorsement came during a conference where she emphasised the need for decisive action to advance European financial integration.
Lagarde argued that creating a single European stock exchange aligns with the broader goals of strengthening the European financial system. She stated, “If we are serious about moving forward, we must complete the banking union and we must apply the same logic – and faster – to capital markets: a single rule-book, a single supervisor, and a consolidation of exchanges.” This echoes previous calls for deeper integration to enhance the Eurozone’s competitiveness on the global stage.
Lagarde also expressed strong agreement with Chancellor Merz’s advocacy for this initiative. She noted, “So I very much welcome the statements and the comments by Chancellor Merz in support of this direction.” The ECB President’s support underscores the growing momentum behind the idea of a consolidated European stock market as a means of fostering economic development and attracting investment.
This proposal arrives at a time when European policymakers are actively exploring ways to boost the region’s economic prospects and strengthen its financial infrastructure. A unified exchange could potentially reduce fragmentation, increase liquidity, and attract more international investors, thereby contributing to overall economic expansion.